VCONST03560 - Zero-rating major interest grants in buildings: 바카라 사이트˜person constructing a building바카라 사이트™: transfers of going concerns (TOGC)
바카라 사이트˜Person constructing바카라 사이트™ status does not move to the person acquiring a completed building that is transferred as a going concern.
This is not to be confused with the effect of obtaining a major interest in a partially constructed building and continuing its construction (VCONST03550).
In Peddars Way Housing Association Ltd (VTD 12663), Breckland District Council (BDC) constructed houses that formed part of their housing stock, and later sold them to Peddars Way in pursuance of a 바카라 사이트˜local stock voluntary transfer바카라 사이트™. The tenants retained their statutory 바카라 사이트˜right to buy바카라 사이트™.
Peddars Way argued that the effect of Article 5.8 of the EC 6th Directive (the 바카라 사이트˜transfer of a going concern바카라 사이트™ provisions) was to disregard the actual transfer from BDC. The result, they argued, was that ownership remains with the same person. Peddars Way, being treated as the same as Breckland District Council, must therefore be regarded as the 바카라 사이트˜person constructing바카라 사이트™ the houses in question. The Tribunal dismissed this argument, stating:
바카라 사이트¦for Peddars Way to succeed in their appeal they have to establish that Article 5.8 applies to qualify a successor business바카라 사이트¦ to zero rating on grants of major interests in dwelling houses as if it had been the person constructing them. 바카라 사이트¦As we read Article 5.8 it is wholly permissive바카라 사이트¦ [it] does not create a directly effective entitlement that United Kingdom taxpayers can rely on. It does not, for example, entitle Peddars Way to say that바카라 사이트¦ it is to be regarded as the person constructing the buildings in question.
The Tribunal found that Peddars Way could not zero-rate the disposal of the houses to the tenants because:
바카라 사이트¦there are no domestic UK provisions that apply to make Peddars Way the 바카라 사이트˜person constructing바카라 사이트™ the buildings바카라 사이트¦